Mohegan Sun's future is expanding and diversifying from gambling
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UNCASVILLE — As his casino's 25th anniversary approached, Mohegan Sun President and CEO Jeff Hamilton said he’s looking to the future.
“It’s very different from a facilities standpoint 25 years ago, and I expect it in the next 25 years to be very different from today,” Hamilton said.
Those next 25 years are expected to include expansion of the company's gaming and non-gaming offerings, he said, pointing to a variety of long-term projects already in the works.
Connecticut legalized sports betting on Sept. 30, and both Mohegan Sun and Foxwoods held events to mark the occasion.
At Mohegan Sun, casino guests surrounded the group of executives, media and politicians, as Connecticut Gov. Ned Lamont cast the first legal sports bet in the state.
Lamont said while on-location gaming is going to remain, he expects online gaming to increase in prevalence, becoming a big part of Connecticut’s future.
“Sports is already entertainment,” Lamont said. “This adds a little zip to it, doesn’t it?”
Keith Wall, vice president of commercial retail for FanDuel, Mohegan Sun’s partner in running the bets, said the companies have had a history together in fantasy sports.
“Mohegan Sun will only grow, from strength to strength, and we’re delighted to join them from the sports betting perspective,” Wall said.
State Sen. Cathy Osten said the two tribal casinos currently give the state $250 million in slots yearly. Once the new additions of sports betting and online gaming are fully active, she expects the contribution to grow by $100 million.
“It will help out the state coffers (and) it will help out the region,” Osten said.
The state would tax sports bets placed online, at casinos or in person at 13.75%, and it would tax online gaming at 18% in the first five years, increasing to 20% for the other five years.
Beyond gaming, Hamilton said Mohegan Sun has become a destination. To keep visitor counts high, there’s constant change.
That includes new entertainment experiences and new restaurants, like TAO Asian Bistro & Lounge, unveiled earlier this year, to make the place feel like “it opened yesterday.”
“Every year, we’re trying to improve the operation, and make sure we’re giving people something new to try,” Hamilton said.
Encouraging tourism is important for Mohegan Sun’s future.
Clyde Barrow, the political science chair of the University of Texas Rio Grande Valley, has studied casinos nationally. He said the peak for both Foxwoods and Mohegan Sun was in 2006, before more competition in the casino business started to enter the area from surrounding states. Before then, any and all gamblers would come to the tribal casinos.
However, Barrow said that the clientele shifted more toward people who seek a “destination casino." These are people who only gamble so much and are willing to spend their money on other activities.
One project that is hoped to move the tourism needle is the Preston Riverwalk.
The non-gaming shopping and entertainment complex to be built on the old Norwich Hospital grounds hasn’t made much progress since the Mohegan Tribe bought the land in 2016. Chuck Bunnell, chief of staff for the Mohegan Tribe, expects the environmental remediation of the land to be finished in a year, and for construction to start soon after.
Bunnell said the Riverwalk will be “an incredible opportunity” for the Mohegan Tribal Council to create a family destination that complements the other tourist attractions in southeastern Connecticut.
Over 393 acres, the original plan consisted of an outdoor theme park, indoor water park, hotels, a sports complex, retail components, 200 senior residential units, 100 timeshare units, a 100-unit RV facility, year-round ski facility and a marina with 50 slips.
“There was a master plan put together by the tribal council for the property pre-COVID,” Bunnell said. “Things are being adjusted based on changes in the retail market.”
Barrow said this offering will make Mohegan Sun more competitive in its niche. As casinos become more commonplace, amenities make them stand out.
“That’s what attracts people from longer distances,” Barrow said.
Tony Sheridan, president and CEO of the Chamber of Commerce of Eastern Connecticut, said some are wary of casino tourism, but people are coming to see the area, and will travel to other points of interest nearby.
Barrow struck a more sober note. Mohegan Sun is a mature facility in a mature market, he said. While it’ll still see growth, from 2 to 4% per year, “it is what it is.”
“That’s true around the country,” Barrow said. “The days of explosive growth in casino gambling are behind us.”
Commenting on the business efforts of both the Mohegan Tribe and the Mashantucket Pequot Tribal Nation, Sheridan said they both have good planning, and are here for the long haul.
“They’re not here to make a quick buck,” Sheridan said. “They invest in the community and they’re proud of the community.”
As for Hamilton, he said “there’s a lot to be excited about on the horizon for the next 25 years.”
